ASIAN JOURNAL OF MANAGEMENT CASES, 7(1), 2010: 5572

SAGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE/WASHINGTON DC

DOI: 10.1177/097282011000700105

PRODUCTION OPTIONS AT PRIME SAFETY LIMITED

Kamran Ali Chatha
Muhammad Ayaz
Prime Safety Limited (PSL) is a manufacturer of corporate and industrial clothing,
catering to mostly European customers. A majority of its customers had order
sizes below 500 pieces. To improve the flexibility and operational efficiency of its
production process, PSL had plans to implement modular (also known as cellular)
manufacturing in the sewing department. The organization experimented by designing a cell to assess the potential improvements and obstacles in implementing
the modular concept. This case provides an opportunity to learn the changes in operations and to evaluate whether the conversion to modular manufacturing is appropriate for PSL.
Keywords: Production options, modular manufacturing, small batch size, training
and multitasking, performance measurement

On 30 June 2008, M.A. Ghausi, General Manager Clothing Division, Prime Safety
Limited (PSL), Karachi, was reviewing a report on the results of a modular manufacturing trial at PSL. This trial had been initiated and managed by Wasif Shafi, a recently
hired senior manager.
Apart from the results, the report noted that the average customer order size at
PSL had been dropping for some time and by the summer of June 2008, 65 per cent
of the orders were for less than 1,000 pieces. The report concluded that in order to
manage production of smaller-sized orders, PSLs usual chain production process
might no longer be feasible. It proposed that in order to attain desired flexibility in
producing small-size orders, PSL should look at a modular1 production process as an
alternative.
1
Modular and cellular are the two terms used interchangeably in the industry with modular being
the popular term.

This case study was prepared by doctoral candidate Muhammad Ayaz under the supervision of Assistant
Professor Kamran Ali Chatha at Lahore University of Management Sciences, to serve as a basis for
class discussion rather than to illustrate either effective or ineffective handling of an administrative
situation.

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While M.A. Ghausi had seen modular manufacturing practices applied to small order
quantities in garment factories abroad, he was unsure if the conversion to modular
manufacturing was appropriate for PSL.

COMPANY BACKGROUND
Prime Safety Limited, a subsidiary of the Shahbaz Group of Companies was established
in 1997 as a glove manufacturer. In 2001, one of the garment units of the Shahbaz
Group in Dubai was closed down and all its machines and equipments were transported
and stored at PSL.
Coincidentally, at the same time, one of PSLs reputed glove customers demanded
safety garments as well. This opportunity encouraged PSL to establish a clothing division in 2002. Not only did PSL already have the necessary machines that had been
lying idle but some of the experienced employees from the Dubai factory were still
working at PSL.
Initially, the organization began its clothing division with one sewing assembly line
of thirty machines and an annual revenue of US$ 300,000. Within six months, another
assembly line of thirty machines was added and revenue increased to US$ 900,000.
PSL already had a sales office in the UK for its gloves division, which was now also
utilized to fetch orders for the clothing division. This led to an increase in the orders
from existing customers who now began to order work-wear garments from PSL. In
2004, the clothing division was separated and moved to an independent facility and
the number of machines was increased to ninety (see Exhibit 1 for details).

PRODUCTS
PSL had established itself as a manufacturer of a diverse range of corporate, industrial
and protective clothing, ranging from standard work-wear to highly technical clothing
such as high visibility and fire retardant suits (see Exhibit 2). This specialized range
of protective clothing required sophisticated fabrics. For example, corporate wear
required fabric which was durable, resistant and tough yet comfortable. Similarly,
food industry clothing required some special finishes to ensure durable laundering
properties. PSL imported these specialized fabrics mainly from China and Thailand,
among others.
PSLs customers in Europe demanded varying styles with order quantities ranging
between 505,000 pieces (see Exhibit 3). From 2006 onwards, there was an increase
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in the order quantities of less than 500 pieces. PSL believed that customers with shortorder quantities were more loyal and had more repeat orders as compared to others.
This encouraged PSL to focus on these short-order quantities to get a consistent flow
of work.

OPERATIONS
The PSL clothing division was situated in the Karachi Export Processing Zone (KEPZ). It
had 410 employees with a monthly production capacity of 50,000 pieces. The planning
and production cycle was divided into five steps (see Exhibit 4).

Fabric Suppliers
A majority of PSLs customers shared aggregate demand forecast in advance, allowing
PSL to order the greige2 fabric before an order was placed to get the fabric weaved.
When a formal order with the exact colour and finishing requirements was received,
PSL shared this information with the fabric supplier to get the fabric dyed/printed
and finished as per customer requirements and shipped to PSL. These select groups
of fabric suppliers needed up to thirty days to deliver the ordered material.

Accessories
Once the customer order was placed, PSL arranged the trims (zips, buttons and embellishments, if any) for the order. Except zippers, all other trims were procured
locally. It took up to a month to arrange all the trims.

Cutting
After laying the multiple layers of fabric on a cutting table and marking the top layer
with the help of a proper pattern, manually operated high-speed cutters were used
to cut multiple pieces from the layers. It usually took a week for the material to be
cut.

Sewing, Ironing and Packing

Workers assembled cut pieces and attached accessories such as zips and buttons. After
that the garments were pressed and packed as per customer requirements.
2

Raw fabric, i.e., un-dyed.

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MANUFACTURING PRACTICES IN SEWING

The sewing department at PSL employed the traditional chain system where each
product that was to be manufactured was broken down into different operations. The
machines were arranged as per the operations in each style (see Exhibit 5 for a typical
layout for production of combat trousers). PSL followed a hybrid system of material
flow. Cut parts in bundled form were transported to the sewing room and given to the
operators scheduled to complete the operation. The operations in a particular garment
were divided into three sectionsparts, pre-assembly and final assembly. Materials
flowing in the parts operations were in bundle form. An operator was expected to
perform the same operation on all the parts in the bundle and set it aside or put it in
a bin for the next operation. Bundle routing identified the basic operations sequence
of production and the work centres where the operations were to be performed. In
sub-assembly and assembly operations, PSL modified the progressive bundle system
with its experience of short-order quantities. At each operation, workers placed each
completed piece in the bin of the next operator. This modification improved the
throughput time.
The advantage with this system was that each worker repeatedly performed a single,
repetitive task on each garment in a batch of identical items, thereby developing expertise and rhythm that resulted in high levels of speed and productivity.
Workers in the sewing department were regular salaried staff with a female ratio of
90 per cent. This was against the industry norms because a majority of the garment
units were working with contract labour with a female ratio of less than 30 per cent.
Workers had no formal training and acquired skills on-the-job. These skills were based
on conventional working practices. The workers were graded in three categories according to their skills. Grade 3 operator with basic machinist skills was the lowest
machine operator grade while Grade 1 was the most skilled (see Table 1). Different
salary brackets were defined for these grades to acknowledge the skill diversity. In
Table 1
Proportion of Operators with Specific Skills
Operator Grade

Proportion of Operators

Grade 1
Grade 2
Grade 3

10 %
3035 %
5560 %

Source: Company documents.

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addition to this, PSL was also providing transportation and subsidized dining facility
to the workers.

MODULAR MANUFACTURING AT PSL

In March 2007, PSL hired a senior manager, Wasif Shafi to look after the operations of
the clothing division. He was a business graduate with some consulting experience.
Ghausi told Wasif:
You have experience of seeing garment operations in a number of units. I want
you to view our operations critically. The competitive pressures are increasing
and we are facing stiff competition from China. What changes can we make in our
operations to meet this competition?
Wasif spent two weeks studying the operations and interviewing different employees
for insights on various issues. At the end of this exercise, he submitted his orientation
report to the senior management. One of the significant changes that he suggested
was converting the sewing floor from the traditional chain system to the modular
manufacturing system. The increasing number of small-order sizes mitigated the
advantage of employing a chain system because by the time the workers started acquiring the rhythm, the order was completed and a new style was begun, which had
similar operations but varying work content. Style change on an average took usually
six to eight hours for basic products. During this period, the old style was eliminated
from the assembly line and gradually replaced with the newer style. Output during
this time period remained less than the target (see Exhibit 6 for statistics on the
traditional system). In addition, sewing an average garment took twenty-five minutes
of actual labour, while it took around nine hours to pass through the sewing room.
These discrepancies led Wasif to think about alternate manufacturing practices. He
decided to run a modular manufacturing trial to assess potential gains.

ESTABLISHMENT OF THE IE DEPARTMENT

Following the industry norms of not having scientific ways of measuring capacity
and productivity, PSL was also working without a proper Industrial Engineering (IE)
department. The production manager used his judgment to establish capacity for a

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particular style. This capacity was then used for production planning, costing and
order booking and set as a target for sewing room operators. The sewing department
started working on a particular order as per plan by employing the layout set by the
production manager.
When Wasif discussed the idea of setting up an IE department with the production
head at PSL, the latter replied:
It works well only when you have a long production run where workers perform
repetitive tasks and you can standardize the operations. The IE department may
not be that beneficial when there is a style change every week.
After consulting with the senior management, Wasif started the IE department by
hiring one industrial engineer.

IE ACTIVITIES
In order to assess the capacities, the first task that the IE department did was to conduct time and motion studies on various styles. This helped to assess the potential
for improvement. For example, they studied the style of one of the regular products
produced at PSL. The current daily target for this product was 175 pieces. The IE department conducted time and motion studies and subsequently suggested some work
aids (see Exhibit 7) to reduce the cycle time at different operations. These changes
in workstation layout were implemented, despite some resistance from the production staff, which improved the sewing room productivity by 40 per cent. This success
strengthened the managements confidence in IE.

UNDP (GENPROM) TRAINING PROGRAMME

In July 2007, PSL opted for a training programme named GENPROM, a joint project
of the United Nations Development Programme (UNDP) and Pakistan Readymade
Garments Manufacturers & Exporters Association (PRGMEA), aimed at gender promotion in the garment/clothing sector through skill development. Kurt Salmon Associates (KSA), a renowned international consulting organization, was hired by GENPROM
to help in establishing training units in selected garment factories. The consultants
were required to train the master trainers of all these factories as well as the workers
in scientific methodologies. In addition to this, consultants were also going to provide
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guidelines in the improvement of any one department of the organization. This could
be Industrial Engineering, Sewing Room Production Management, Cutting Room
Management or Quality Assurance.
PSL hired four industrial/textile graduates with three months of extensive training
from KSA on industrial engineering applications. During this period, these engineers
under the guidance of the consultants set up a fifteen machine training centre at
PSL. The objective was to train the workers who had no prior experience of stitching and to retrain the existing operators to improve their skills. Industrial engineers
selected the workers by using training aids to check for hand-eye coordination, finger
dexterity and colour blindness so that the right persons could be selected for the job.
The workers who qualified for the job were trained systematically, moving gradually
from basic paper exercises to fabric exercises. At the end, stamina building exercises3
were conducted to increase productivity. Those workers who attained 70 per cent4
capacity, qualified for graduation. This process took about two months while it cost
approximately US$ 140 a month per trainee, depending upon the operation on which
the worker was being trained.
PSL opted for acquiring industrial engineering guidelines from KSA. The KSA consultant evaluated PSLs operations and recommended modular manufacturing for
better operational efficiencies. IE personnel were provided guidelines on implementing modular manufacturing. KSA emphasized that skill inventory, product selection,
staff selection and compensation systems were important considerations while implementing modular manufacturing.

CELL DESIGN
In May 2008, PSL designed its first cell after a lot of deliberations. The main issue
was the availability of multi-skilled workers. There were a few multi-skilled workers
already working at PSL, but the production department was not willing to spare them
because that could affect the production of the running orders. Hiring multi-skilled
workers for a trial run was expensive and risky. When IE discussed this idea with the
production department, the reply was:

After a trainee had developed the necessary skills, he started developing his stamina by practicing
progressively on a particular task for longer periods.
4
Capacity is an operators potential performance level. It is determined by time study. During training,
the capacity of an operator is compared with his actual output.

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Where are you going to get multi-skilled operators from? Even if you can arrange
for them, it will still be an impossible task to manage. For example, if one operator
is absent, how will you get another operator with the same skills?
When discussed with the sample room5 head, he commented:
I believe this will not work because when operators perform repetitive tasks they
are more productive as compared to working on multiple operations. Secondly,
labour cost will rise, as you need to pay more to cell workers while productivity
benefits will not be significant. Finally, machine utilization will be reduced because
all the machines in the cell will not be working at the same time. Therefore, we
need to focus on the chain system and try to improve that rather than going for an
expensive and difficult option.
After considering various alternatives, it was decided to use sample room workers
who were multi-skilled and experienced enough to take up this challenge (see Exhibit 8
for skill matrix). Wasif commented on this decision:
We also had some very short-order quantities of up to a 100 pieces. The multi-skilled
sample room workers produced these orders by working on a batch system or full
piece basis6 as appropriate. This competency of sample workers in terms of their
capability to do multiple sewing operations and handle multiple machines led us
to select them for the modular trial. The only point of concern was that the sample
room workers were not productivity conscious because of their nature of work.
The IE department reviewed various products and selected the combat trousers to
be produced in the cell. This was a 650-piece order and the skill requirement was of
medium complexity. The sample room workers were given training to understand
their role while working in cells. The sample supervisor, trained in basic modular
manufacturing concepts, was selected to lead the cell.

This department has the most skilled workers because they are the ones who develop the initial
product samples for buyer approval before starting actual production.
6
This is when each operator stitches the whole garment rather than a particular portion of it.

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In consultation with the cell supervisor, the first cell designed by the IE department
had eight operators and fourteen sewing machines. Most of the machines had different
sewing capabilities and were selected according to the particular operations needed
in the production of a combat trouser. In the traditional chain system, each worker
was assigned to a specific machine and had to perform a specific operation, but in
cell manufacturing, operators had to perform multiple operations which may be on
different machines. Additionally, if a machine broke down, the workers would not
sit idle waiting for repairs as was the traditional norm. They would move to another
machine within the cell to continue while the mechanic would either repair the
machine or replace it.
The bundle size in the cell was seven pieces unlike the chain system in which each
bundle was of about sixty-five pieces. Also, the throughput time for a garment was
dropped to six-and-half hours. In a cell, the bundle was split and passed from operation
to operation as individual units. The first operator would perform the assigned operation on the first piece in the bundle and then place the completed piece next to his/her
workstation where it was accessible to the other operator. The next operator would
perform the second operation, and then place the piece between his/her station and
the next operation, and so on. When there was a bottleneck at any operation, the preceding operation, was stopped and the cross-trained operator moved to the subsequent
operation in order to clear the congestion further down the line, and continue to put
work through the cell. In this manner, the workers balanced their work to make sure
that the batch moved through the cell as quickly as possible. See Exhibit 9 for cell
configuration-placement of machines, workers and work flow.

TRIAL RESULTS
The cell trial was run for six days and it showed a number of improvements over the
chain system. Direct labour had decreased for the same output. Indirect labour such as
helpers and quality checkers had also been reduced. In the chain system, there were
two to three quality checkers, while in cell manufacturing there was only one quality
checker within the line. Offline quality checking was the norm in cell manufacturing
and any defect that was found could be quickly and easily corrected. This improved
the quality as there was less work-in-process and quality problems could be identified
before the production of many defected garments. The labour cost/head rose because
this process required multi-skilled operators. However, cell output also increased (see
Exhibit 10 for cell statistics).

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There were some issues and drawbacks associated with modular manufacturing.
The most important one was the availability of multi-skilled operators. Although
PSL had its own training centre to train the operators in various skills, but whether
existing operators would be willing to work in cells was a question mark. Moreover,
training a multi-skilled operator was time consuming. Another important concern
was work management in the cell. Unlike the traditional system where each worker
was accountable for only his own work, the operators in the cell were accountable
for overall cell productivity. For example, if a worker in the traditional system was
assigned to attach collars, he was only responsible for the number of collars attached
by him, but in a cell he had the responsibility of the number of garments produced
by the cell. Keeping all these concerns in view, Ghausi was thinking whether modular
manufacturing was appropriate for PSL.
Exhibit 1
Summary of Company Progress
Year

No. of M/CS

2002
2003
2004
2005
2006
2007

No. of Employees

Annual Sales Revenue

NA
NA
142
346
426
429

$300,000
$600,000
$1,200,000
$1,500,000
$2,400,000
$3,600,000

30
60
90
120
130
130135

Source: Company documents.

Exhibit 2
Product Profile
Image & Industry Wear

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Corporate Wear

Food Industry Clothing

Source: Company documents.

Exhibit 3
Breakup of Order Quantities (January to June 2007)
Number of Orders
Month
January
February
March
April
May
June
TOTAL

1 to < 500
61
38
33
15
28
24
199

500 to < 1,000

10
26
06
05
04
05
56

1,000 to < 1,500

14
10
08
10
14
12
68

1,500 to < 2,000

07
04
11
02
0
0
24

Source: Company documents.

PRODUCTION OPTIONS AT PRIME SAFETY LIMITED 65

2,000 Onwards
10
03
09
09
10
04
45

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Exhibit 4
Work Flow

Source: Case writers notes.

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Exhibit 5
Traditional Sewing Room Layout

Source: Company documents.

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Exhibit 6
Statistics for Traditional Line
For a Typical Style
Actual sewing work content (min/pc)
No. of required machines
No. of required operators
No. of helpers
End of line quality checkers
In line quality checkers
Supervisor
Available time
Output (pcs/day)
Bundle size (pcs)
z
z

25
30
28
5
2
1
1
420
182
65

Overhead cost
= 6.94 $/mc/day
Direct labour cost = 15 $/head/day

Source: Company documents.

Cost figures disguised to maintain confidentiality.
Exhibit 7
Sample Work Aids
A. Left Table Extension to Help the Operator to Better Handle Large Work Pieces

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B. Pocket Shelf which Facilitates the Operator while Attaching the Pocket

Source: Company documents.

PRODUCTION OPTIONS AT PRIME SAFETY LIMITED 69

1.13

0.55
0.55 0.39 0.24

2 2.20
0.95 1.17
0.5 0.35 0.6

0.39
0.69
1.30

3.54 0.48 0.65 0.60

0.9

Cycle Time (min/piece)

1.12

0.95
0.97
0.90

1.2 1.13

1.85
1.6

1.10 1.02
1.29 1.60
1.10

Exhibit 8
Skill Matrix of Workers Selected for Modular Trial Run Based on the Particular Product

Source: Company documents.

Note: All operators are of Grade 1.

FAISAL
ZAFAR
RASHID
AHMED
RASHID
ARMAAN
RAFIQ
JAWED
JAMEEL

Name of
Operator
small parts o/l
back pocket hemming
thigh pocket hemming
small pocket hemming
button track making
tab making
thigh pocket making
ftap runstitch
flap top
back darts
back rise safety
back rise top
back pocket attach
facing attach
facing top
lining attach
fly attach and zipper
button track attach and zipper
front attach and crotch
pocket bag close
side seam
side top
thigh pocket attach
thigh pocket and flap top
barcode label and d ring attach

0.60

inseam

0.91

bottom hem

1.02

belt attach
1.06

belt point

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Exhibit 9
Modular Layout

Source: Company documents.

Note:
In Cellular layout, operations are merged to reduce the line.
Represents movement of operators performing multiple operations.

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Exhibit 10
Statistics for Modular Line
For a Typical Style & Single Cells
Actual sewing work content (min/Pc)
No. of required machines
No. of required operators
No. of helpers
End of line QCs
In line QC
Supervisor
Available time
Output (pcs/day)
Bundle size (pcs)
z
z

Overhead cost = 6.94 $/mc/day

Direct labour cost =
18.1 $ /head/day

Source: Company documents.

Cost figures disguised to maintain confidentiality.

72 KAMRAN ALI CHATHA AND MUHAMMAD AYAZ

25
14
08
3
0
1
1
420
100
07